European Financials: SIU feedback & investor debates

Research evidence excerpt

European Financials: SIU feedback & investor debates

Barclays | European Financials

Our work on the European Savings and Investment

Union

The Savings and Investment Union ('SIU') is Europe's framework to drive economic growth

and address an investment gap of €750–800bn per year. It is supported by the deployment

of €10tr of household savings into more productive assets, with more competitive

European financials at its core.

FIGURE 1. SIU objectives: Economic growth and investment through better deployment of household

wealth and improved financial services

Why is the Savings €€ 5% & Investment union

needed? Europe needs €750 – 800bn of …equivalent to 5% of GDP, which additional investment… banks/public funding can't fulĤl

Source: Draghi report Source: Barclays Research

EU 17% $$$

US 43%

EU households have c€10trn of savings …with only 17% of wealth in better …whilst only c10% of corporate funding

in bank deposits… yielding Ĥnancial assets… came from equities/bonds in 1H23

Source: Eurostat Source: European Council Source: AFME Report Capital Markets Union

US equities EU equities EU UK US

95% 140% 300%

Internal barriers in EU Ĥnancial services are …with EU market cap <100% of GDP …and US equities >10x more liquid than

equal to a tariģ of >100%... vs 300% in the US… in Europe

Source: IMF Source: Bloomberg pricing (11 May 2026), LTM aggregate equity ADTV as % GDP

Barclays Research Source: Barclays Research

Within EU Financials, we think the Diversified Financials sector is best positioned to

benefit from SIU, with exchanges the stand-out sub-sector (we previously estimated adding up

to c20% to EPS). For Banks and Insurance we believe the notable beneficiaries are likely to be

the diversified, international names. Across our coverage we consider ENX, DB1, BNP, DBK, ALV,